TDS applicable on cash withdrawal – Important Points
TDS (Tax deducted at source) applicable on cash withdrawals in excess of specified limits. The threshold and the rate of TDS applicable for cash withdrawals will depend on the submission of proof of filing your Income Tax Return to the Bank.
Details for TDS applicable on cash withdrawal:
• TDS will be applicable if the total cash withdrawal across all accounts under your PAN exceeds Rs. 20 Lakh * (if no ITR has been filed for all the three previous Accounting Years) or Rs.1 Crore *(if ITRs have been filed for all or any one of the three previous Accounting Years) in a financial year.
• TDS will be charged on the amount withdrawn above Rs. 20 Lakhs* (if no ITR has been filed for all the three previous Accounting Years) or Rs.1 Crore *(if ITRs have been filed for all or any one of the three previous Accounting Years).
• The cash withdrawal limit for this financial year will be considered from April 1, 2023.
• We will consider all cash withdrawals at the primary CRN (Customer Relationship Number) level.
• The rate of TDS will be as under:
|Aggregate cash withdrawals in all accounts in a financial year.||Income tax return copy submitted to the Bank.||Income tax return copy NOT submitted to the Bank.|
|Up to Rs.20 Lakh||Nil||Nil|
|Rs.20 Lakh to Rs. 1 Crore||Nil||2%@|
|In excess of Rs. 1 Crore||2%@||5%@|
The following entities are exempted from TDS on cash withdrawal:
• State and Central Government Accounts.
• A banking company or a co-operative society engaged in the business of banking or a post office.
• Any white-label automated teller machine operator of a banking company or a co-operative society engaged in the business of banking in accordance with the authorization issued by the Reserve Bank of India.
• Business correspondent of a banking company or a co-operative society engaged in the business of banking.
• Such other person(s) as the Central Government may notify.
To avail higher cash withdrawal threshold for TDS, we request you to submit the required declarations** along with ITR-V (Acknowledgement of filing of Income Tax return ) pertaining to FY 2021-22, FY 2020-21 or FY 2019-20 to the nearest Kotak Bank branch.
We request you to provide the declaration and ITR-V as mentioned above if you wish to avail higher cash withdrawal threshold for TDS, failing which a lower threshold of Rs.20 Lakh will be considered, and the corresponding TDS rate as mentioned in the above table will be applicable on cash withdrawals above Rs. 20 Lakh.